Resolution No. 6177
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RESOLUTION NO. 6177
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF AN ADMINISTRATIVE AND COMMUNICATIONS SERVICES
AGREEMENT BY AND BETWEEN THE CITY OF VERNON, THE
GREAT-WEST LIFE ASSURANCE COMPANY AND BENEFITS
CORP EQUITIES, INC. TO PROVIDE ADMINISTRATIVE
AND COMMUNICATION SERVICES FOR THE CITY AND ITS
EMPLOYEES FOR AN INVESTMENT PROGRAM OFFERED TO
CITY EMPLOYEES PURSUANT TO THE CITY'S DEFERRED
COMPENSATION PLAN
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WHEREAS, the City of Vernon (also referred to as
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"Employer") maintains a Deferred Compensation Plan ("Plan") for
its employees; and
WHEREAS, the Internal Revenue Service has issued a
favorable private letter ruling approving the Plan Document as
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complying with S457 of the Internal Revenue Code; and
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WHEREAS, The Great-West Life Assurance Company issued to
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the City the Great-West Life FutureFunds Contract Policy No.
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98270, a deferred compensation annuity contract dated December 1,
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1988, to provide an alternative investment program for the City'S
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employee participants of the Plan; and
WHEREAS, the city Council of the City of Vernon, by
Resolution No. 5671 adopted on September 5, 1989, approved and
ratified the execution of a contract with Great-West Life and
Annuity Insurance Company ("Great-West") to provide and administer
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alternative investment opportunities for participants in the
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City'S Plan; and
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WHEREAS, the City employs the International City
Management Association ("ICMA") Retirement Corporation and the
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Great-West to provide and administer investment programs for the
employee plan participants in the City'S Plan; and
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WHEREAS, the City deems it proper and appropriate that
the administrative and communication duties being undertaken by
Great-West and its subsidiary, Benefits Corp Equities, Inc., for
the investment program it provides to City employees be set forth
in writing in conformance with the City's Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: That the City Council of the City of Vernon
does hereby find and determine that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the city of Vernon hereby
approves the Administrative and Communications Services Agreement,
a copy of which has been presented to the City Council
concurrently with this resolution, and the city Council hereby
orders said Agreement to be received and filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and City Clerk to execute said Agreement for,
and on behalf of, the City of Vernon.
SECTION 4: The city Administrator shall be the
coordinator for these investment programs and have the authority
to represent the City to make all discretionary decisions
affecting the rights or benefits of the City's employee plan
participants which may be required in the administration of the
Plan. Administrative duties to carry out the requirements of the
Plan may be assigned to the appropriate departments.
SECTION 5: Great-West shall continue to perform
nondiscretionary administrative functions in connection with the
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Plan, which shall include among its other duties, the maintenance
of employee plan participant accounts, the provision of periodic
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reports of the status of each account and the disbursement of
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benefits on behalf of the City in accordance with and as may be
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required pursuant to the provisions of the Plan.
SECTION 6: The City Clerk of the City of Vernon shall
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certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 20th th day of October, 1992.
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/ i" Y- / //J
//:r;;~~//7
MALKENHORST, City Clerk
AT;4
BRUCE v.
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STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
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I, BRUCE V. MALKENHORST, City Clerk of the city of
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6177, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, October 20. 1992, and thereafter was duly signed by
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the Mayor of the City of Vernon.
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B UCE V. MALKENHORST, City Clerk
(Seal)
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~~/77
ADMINISTRATIVE AND COMMUNICATIONS SERVICES AGREEMENT
This Agreement is entered into among the City of Vernon (hereinafter referred to
as the "City" or "Employer"), The Great-West Life Assurance Company (hereinafter referred
to as "Great-West Life") and Benefits Corp Equities, Inc. (hereinafter referred to as "BCE").
WHEREAS, the Employer has established a Deferred Compensation Plan
(hereinafter referred to as the "Plan") for its employees in accordance with Section 457 of
the Internal Revenue Code of 1986, as amended from time to time; and
WHEREAS, Great-West Life has issued to the City the Great-West Life and Annuity
Insurance Company (hereinafter referred to as "GWL & A") FutureFunds Contract Policy
#98270 (hereinafter referred to as "FutureFunds"), a deferred compensation annuity
contract, dated December 1, 1988, to provide an alternative investment program for the
City's employee participants of the Plan; and
WHEREAS, Great-West Life has agreed in the GWL & A FutureFunds, entered into
with the City September 5, 1989, to administer the FutureFunds in accordance with the
City's Plan; and
\VHEREAS, GWL & A and BCE have agreed to provide employee communication
and marketing services for the investment options provided by GWL& A FutureFunds and
offered under the Plan; and
WHEREAS, the City and Great-West agree that the City shall make all the
discretionary decisions which may be required in the administration of the Plan and Great-
West shall maintain the plan participant accounts, issue reports and disburse benefits on
behalf of the City in accordance with the Plan.
NOW THEREFORE, in consideration of the mutual covenants contained herein, the
parties hereto agree as follows:
SECTION A
The Employer agrees to make all discretionary decisions affecting the rights or benefits of
employee participants of the Plan which may be required in the administration of the Plan
and to undertake such other duties as follow:
1. The Employer authorizes BCE to make available the FutureFunds contract to all
eligible employees.
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2. Upon the effective date of this Agreement, the Employer appoints BCE as the
employee communication and marketing services representative for Great-West Life
and FutureFunds.
3. The Employer agrees to provide representatives of BCE with reasonable access to
employees on the work site necessary to fulfill the services listed in Section C of this
Agreement.
4. The Employer agrees to assist in establishing dates, times, and the announcement of
the group meetings referenced in Section C of this Agreement, and to assist in
distribution of Plan and investment options promotional items listed in Section C.
5. The Employer will remit contributions directly to Great-West Life via wire or check,
and submit contribution data for the investment options to Great-West Life via tape,
"floppy" disk, turnaround document, acceptable payroll register, or via telephone
transmission.
6. The Employer agrees that in exchange for the record keeping and other services
provided by Great-West Life and BCE, Great-West Life shall deduct the fees as
described in Schedule A attached hereto and incorporated herein be reference.
SECfION B
Great-West Life agrees that as agent for the Employer, it shall perform nondiscretionary
administrative functions in connection with the Plan, including the maintenance of employee .
participant accounts, the provision of periodic reports of the status of each account and the
disbursement of benefits on behalf of the Employer in accordance with the provisions of the
Plan, and to undertake such duties as follow:
1. To receive contributions from the Employer and forward such contributions for
investment as directed in writing by the Employer.
2. Maintain individual records for each participant enrolled which shall include name,
social security number, the specific amounts of each participant's current deferrals,
investment options chosen, and other pertinent data necessary for the efficient
administration of each participant's account.
3. To handle all participant inquiries regarding their accounts and their investment
options, coordinate transfers among investment options and coordinate payments
from the investment. options.
4. To do all necessary tax withholding and reporting with respect to investment options
BeE markets to the Plan.
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5. To provide quarterly statements mailed directly to each participant's home address.
6. To provide quarterly summary Employer Reports.
7. To provide all forms and materials necessary to promote and administer the
investment options.
8. To make such withdrawals as requested by the Employer and as provided in the Plan.
SECfION C
BCE agrees as follows:
1. To enroll eligible employees who elect to participate in the Plan into the investment
options elected by such participants.
2. To provide group meetings as mutually agreed upon among the parties.
3. To provide individual counselling sessions for any employee upon request.
SECfION D
Any duties of Great-West Life herein set forth may be assigned to GWL & A.
The benefits and duties of this Agreement shall inure and devolve upon the successors and.
or assignees of Great-West Life and BCE.
SECfION E
This Agreement shall be construed in accordance with and governed by the laws of the State
of California.
At any time and from time to time, each party shaH take or cause to be taken all such other
actions as the other party may reasonably require to carry out the terms and provisions of
this Agreement.
Each of the parties hereto agrees that this Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and an of which together shall
be deemed to be one and the same Agreement.
"
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SECTION F
This Agreement is effective December 1, 1988, and will remain in full force and effect until
terminated as follows:
1. Automatically upon the date the FutureFunds contract, as amended, or a successor
contract, is no longer currently being offered to eligible employees under the Plan;
or
2. Upon cancellation by any party upon 90 days prior written notice by Certified Mail
to the addresses herein.
3. The expense level described in Schedule A is in effect as long as the Great-West Life
& Annuity Insurance Company is acting in its current capacity as the investment
option provider for the Policyholder's plan, and there are not substantial changes in
the operation of the Policyholder's plan, including by not limited to a change in
approved investment option providers, marketers of required administrative services,
This agreement may be modified at any time upon mutual consent of both parties.
City of Vernon
Company
Duo ,~ /
~;~r7r-L'~/;~/0--LL"U- z~ '
(Leonis C. NalHurg .
Title Mayor
By:
Date
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...-' . ("., t".-........,.-
Title rYfn~vrJ f=),~."'/l"f' (Jra....~ b.:na..$
Date ~;f~'/C~
Address: 8505 East Orchard Road
Englewood, Colorado 80111
Address: 4305 Santa Fe Avenue
Vernon, CA ~8
ATTEST: /<-- ,/5hj~_/~
Bruce V. Malkenhorst
City Clerk
BenefitsCorp Equities, Inc.
APPROVED AS TO FO~~:
\>>J e. ~~
David B. Brearley, Cit Attorney
BY:(~~~
Title ~~;..~
Date 3-3/-92.
Address: 8505 East Orchard Road
Englewood, Colorado 80111
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SCHEDULE A
The following modifications of FutureFunds Contract #98270, as referenced in the
Administrative and Communications Services Agreement attached hereto, of which this
Schedule A is part thereof, are agreed upon by the parties to said contract:
1. Contract Maintenance Charge. The Contract Maintenance Charge is declared to be
$12.00 per year.
2. Contingent Deferred Sales Charge. The Contingent Deferred Sales Charge provision,
including the contingent Deferred Sales Charge Free Amount and all references to
either or both, are hereby waived on all participant surrenders or withdrawals as
permitted under the Employer's Plan due to retirement, termination of service,
financial hardship, death, or disability. Transfers to another investment option other
than FutureFunds, will be charged with a Contingent Deferred Sales Charge as
described below, and certificates may only be transferred at maturity.
Years of Participation
0-5
6 - 10
11 - 15
Over 15
% Assessed
5%
4%
3%
0%
In no event will the Contingent Deferred Sales Charge exceed 8.5% of contributions
received.
3. Transfer Charge. The Transfer Charge is declared to be $0.00
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1 RESOLUTION NO. 8545.
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3 A RESOLUTIpN pF THE CITY COUNCIL OF'THE CITY OF
4 VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AMENDMENT TO THE ADMINISTRATIVE SERVICES
5 AGREEMENT FOR-PLAN NUMBER 301376 AND 109759 BY AND
BETWEEN THE CITY OF VERNON AND ICMA RETIREMENT
6 CORPORATION
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g WHEREAS, on November 16, 19.82, the City Council of the City
9 of Vernon adopted Resolution No. 4955 approving a Deferred
10 Gompensation.Plan (the "Plan") with the International City Management
11 Association.("ICMA") Retirement Corporation to provide retirement
12 income and other deferred benefits to employees; and
1g WHEREAS, on September 20, 1983, the City Council of the City
14 of Vernon adopted Resolution No. 5042 approving amendments to the
15 Plan, authorizing the execution of the ICMA Retirement Trust and
16 appointing-the City Administrator to be the coordinator of the program
17 on behalf of the City of Vernon; and
18 WHEREAS, on November 23, 1'9'93, the City Council of the City
19 of Vernon adopted Resolut-ion No. 6357 approving an Administrative
2q Services Agreement with the ICMA Retirement Corporation respecting
21 Plan Number .301376; and
22 GVHEREAS, on December~l5, 1998, the City Council of the City
23 of Vernon .adopted. Resolution No. 72,54 adopting a Money Purchase.
24 Retirement Plan and Trust (Number 109759) to be administe-red by the
25 ICMA. Retirement Corporation and funds held under such Plan invested in
26 the ICMA Retirement-Trust, a trust established kiy public employers for
27 the collective investment of funds held under. their retirement .and
28 deferred compensation plans; and
1 WHEREAS, on September 5, 1989, the City Council of the-City
2 0£ Vernon adopted Resolution No. 5671 approving an agreement with
3 Great-West Life and Annuity Insurance Company ("Great-West") to provide
4 and adminster~alternative investment opportunities for participants in
5 the City's Plan; and
6 WHEREAS, on October 20, 1992, the City Council of-the City of
7 Vernon adopted Resolution No. 6177 approving an Administrative and
8 Communications Services Agreement with Great-West and its subsidiary,
9 Benefits Corp Equities, Inc..; and
10 WHEREAS, the ICMA Retirement Corporation has offered to
11 gradually eliminate fees under .its agreements contingent upon being an
12 exclusive provider of administrative and investment services under the
13 Plan; and
14 WHEREAS, on October 6, 2004., the Finance Committee considered
15 the recommendation of Bruce V. Malkenhorst, Director of Finance, dated
16 September 26, 2004, that an amendment to the Administrative Services
17 Agreement with ICMA Retirement Corporation be approved and executed;
18 and
19 WHEREAS, the .City Council of the City of Vernon has -
20 determined that,- pursuant to the provisions of subsection (a) of
21 Section 2.27 of the Vernon City Code, it is in the public interest and
22 necessity to enter into a new agreement with ICMA Retirement
23 Corporation.
29 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
25 CITY OF VERNON AS FOLLOWS:
26 SECTION 1: The City Council of the City of Vernon hereby
27 finds and .determines that the recitals contained hereinabove are true
28 and correct..
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1 SECTION 2: The City Council of the City of Vernon hereby
2 approves the Amendment to the Administrative Services Agreement for
3 Plan Number 301,376 and 109759 with ICMA Retirement Corporation, a copy
9 of which is attached hereto as Exhibit A and incorporated by
5 reference.
6 SECTION 3: The City Council of the Ca y of Vernon hereby
7 authorizes the Mayor and the City Clerk to execute said Amendment for,
8 .and on behalf of, the City of Vernon.
9 SECTION 4: The City Council of the City of Vernon hereby
10 authorizes the City Administrator, or his .designee, to execute any and
11 all documents necessary to implement and carry-out.-the purposes
12 specified i.n the Amendment, for, and on behalf of, the City of Vernon.
. 13 SECTION 5: The City. Council of the City of Vernon hereby
14 directs the City Clerk, or his designee, to send one fully executed
15 Amendment to•
16 ICMA Retirement Corporation
Attn. San Diep, New Business Analyst
17 777 N. .Capitol Street, NE
18 Washington, DC 20002-4240
19 SECTION 6: The City Clex'k of the City of Vernon shall
20 certify to the passage of this resolution, and thereupon and
21 thereafter the -same shall be in-full force and effect.
22 APPROVED AND ADOPTED this 6th day of October, 2004.
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2 4 - '..~"-lra ~~'r~ '
EONIS C. MALB G, Ma r
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26 ATTEST:
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_ BRUCE V. MALKENHORST, City Clerk,
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1 STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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4 I, BRUCE V, MALKENHORST, City Clerk of the City of Vernon, do
5 hereby. certify that the foregoing Resolution, being Resolution No.
6 855, was duly. adopted by the City Council of the City of Vernon at a
7 regular meeting of the City Council duly held on Wednesday,
8 September 15, 200, and thereafter was duly signed by the Mayor of the
9 City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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13 (SEAL}.
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EXHIBIT
A
AMENDMENT
TQ THE
Administrative Services Agreement.
for Plan Number 301376 and 109759
This Amendment to the Administrative Services Agreements. ("Agreements") for Plan numbers 301376 and
109759 (the "Plans") is entered by and between City of Vernon ("Employer") and ICMA Retirement
Corporation ("RC"), effective as of the date of execution by the Employer below ("Execution Date").
WHEREAS, the Employer sponsors the Plans. on behalf of its eligible employees and retirees; and
WHEREAS, the Employer entered the Agreements to engage RC ~to provide administrative services and
.investments for. the Plans under the. terms specified in-the Agreements; and
WHEREAS, the parties wish to amend the Agreements to provide for an annual'reduction in the Plan
Administration fee paid under the Agreements and. elimination of the Mutual Funds Fee under the Agreements
contingent upon RC acting as the. exclusive provider of administrative and investment services for the Plan over
the term of the Agreements and contingent on the Employer's use of EZLink for enrollment and contribution
processing over the term of the Agreements; and .
WHEREAS, Section 10(a) of the Agreements provide that the Agreements maybe amended pursuantto a
written instrument signed by the parties;
NOW, THEREFORE, the Agreements are.hereby amended as follows:
FIRST
The following is added as a new section 3 to the Agreements, and the current provisions of the
Agreements are re-numbered accordingly:
Employer agrees that for the initial or succeeding term of this Agreement specified in Section 10,
so long as RC continues to perform in all material respects the services to be performed by it
under this Agreement, Employer shall not obtain plan administration and investment advisory
services from- anyone .other than RC. :Employer acknowledges that RC has agreed to the
compensation to be paid to RC under this Agreement in the .expectation that RC will be able to
offset costs allocable to performing this Agreement with revenues arising from Employer's
exclusive use of RC at the rates provided herein throughout, the initial or succeeding .term.
SECOND
Re-numbered section 7 of the Agreements, titled "Compensation and Payment" is amended by replacing
subsections (a) and (d) with the following:
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(a) Plan Administration Fee. The-amount to be paid for plan administration services under this
Agreement shall be: (i) For the first year of this Agreement, 0.29% per annum of the amount
of Plan assets invested in. the Trust; and (ii) For years two through five of this Agreement.
0.00% per annum of the amount of Plan assets invested in the Trust.
Such fee shall be computed based on average daily net Plan assets in the Trust.
(d) Mutual Fund Services Fee. There is an annual charge of 0.0% assessed against average daily
net Plan assets invested in the Trust's Mutual Fund Series.
The compensation and payment set forth in this section 7 is contingent upon. Employer's continued use
of EZLink for enrollment and contribution processing over the term of this Agreement.
THIItD
Re-numbered section 10 of-the Agreements, titled "Term" is amended to provide as follows:
This Agreement shall be in effect for an initial term beginning on the Execution Date and ending
5 years after the Execution Date. This Agreement will be renewed automatically for two one
'year terms and each succeeding year unless written notice of termination is provided by either
party to the other no less than 60 days before the end of such Agreement year.
The fee amendment specified in section 7 of the Agreements will take effect in the calendar
quarter following, the Retirement Corporation's receipt of one fully-executed copy of this
Amendment based upon the following schedule:
- Received by February 20: Effective April
- Received by May 20: Effective July
- Received by August 20: Effective October
- Received by November 20: Effective January
In all other respects,=the Agreements are hereby ratified and affirmed.
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IN VV~TNESS WIIEREOF, Employer has caused this Amendment to be executed by its duly authorized officer
.this day o£ , 2Q04.
CITY OF VERNON
By:
j .Print Name•
Title:
ICMA RETIREMENT CORPORATION
by:
Y ~'c~
Paul Gallagher
Corporate Secretary
3ECTI4N F
This Agreement is effective Drcemher 1, 19fiR, and will remain in full force and effect until
Terminated as follows:
Auforntttically upan the date the FutureFunds contract, ~s amended, ~r a suc:t:essor
contract, is na longer currently being offered to eligible employees under Ilse Plan;
tir
2. Upon cancellation by any party upan 90 days prior written notir~ by Certified Mail
- to the addresses herein.
3. The expense level dc$cribcd in Schedule A is in effect as long as the Cheat-West Lice
& Annuity Insurance Company is acting in its current capacity As the investment
option pravieler ft~r the Puticyholcler's plan, and thCre dre not substantial changes in
the operation of the Yo[icyholder's plan, including by not limited to a change in
approved investment nptiptt providers, marketers of required administrative services,
This agreement may be modified at.any time upon mutual consent, cif both parties.
-City of Vernc~it The Circat-West Lifc Assurai Company
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'Leon~.s C: Tlalburg
Title Mayor-~ ~ Title n' ~~1 ~ r., ~-,~:cns
T
T}~ite _ 7 u Date -8~3.i,1~~
c~
f'?aclress:~05 Santa Fe Avenue Address; 8505 East Orchard Rn<iJ
Vernon, A 8 Fn,glewnr~d, Coloradq $Q] l l
1'' ,
ATTEST:
Bruce. V. Ma ken r~rst:
City Clerk I3enefitsCnrp Cyuites, lnc.
APPROVED AS TO FOR.'"i:
avid 13rear ey, Cit Ati:arncy
Title ~ :~ta~,f~
D~ite 3l-¢~.
Address: 8505 East 4rclia.rd Raad
Englewood, Colorado 80111
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SUPPORTING
DOCUMENTS
AMENDMENT
TO THE
Administrative Services Agreement
for Plan Number 301376 and 109759
This Amendment to the Administrative Services Agreements ("Agreements") for Plan numbers 301376 and
109759 (the "Plans") is entered by and between City of Vernon:("Employer") and ICMA Retirement
Corporation ("RC"), effective as. of the date of execution by the Employer below ("Execution Date").
WHEREAS, the Employer sponsors the Plans on behalf of its eligible. employees and retirees; .and
WHEREAS, the Employer entered the Agreements to engage RC to provide administrative services and
investments for the Plans under the terms specified in the Agreements; and
WHEREAS, the parties wish to amend the Agreements to provide for an annual reduction in the Plan
Administration fee paid under the Agreements and elimination of the Mutual F4~nds Fee under the Agreements
contingent upon RC acting as the exclusive provider of administrative and investment services for the Plan over
the term of the Agreements and .contingent on the Employer's use of EZLink for enrollment and contribution
processing over the term of the Agreements; and
WHEREAS, Section 10(a) of the Agreements provide that the Agreements maybe amended pursuant. to a
written instrument signed by the parties;
NOW, THEREFORE, the Agreements are hereby amended as follows:
FIRST
The following is added as a new section 3 to the Agreements, and the current provisions of the
Agreernents are re-numbered accordingly:
Employer agrees that for the initial or succeeding terns of this Agreement specified in Section 10,
so long as RC continues to perform in all material respects the services to be performed by it
under. this Agreement, Employer shall not obtain plan administration and investment advisory
services from anyone other than RC. Employer acknowledges that RC has agreed to the.
compensation to be paid to RC under this Agreement in the expectation that RC-will be able to
offset costs allocable to performing this Agreement with revenues arising from Ernployer's
exclusive use of RC at the rates provided herein throughout the initial or succeeding term.
SECOND
Re-numbered section 7 of the Agreements, titled "Compensation and Payment" is amended by replacing
subsections (a) and (d) with the following:
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(a) Plan Administration Fee. The,amount to be paid for plan administration services under this
Agreement shall be: (i) For the first year of this Agreement, 0.29% per-annum of the amount
of Plan assets invested in the Trust; and (ii) For years two through five of this Agreement.
0.00% per annum of the amount of Plan assets invested in-the Trust.
Such fee shall be computed based on average daily net Plan assets in the Trust.
(d) Mutual Fund Services. Fee. There is an annual charge of 0.0% assessed against average daily
net Plan assets invested in the Trust's Mutual Fund Series.
The compensation and payment set forth in this section 7 is contingent upon Employer's continued use
of EZLink for enrollment and contribution processing over the term of this Agreement.
THIRD
Re-numbered section 10 of the Agreements, titled "Term" is amended to provide as follows:
This Agreement-shall be in effect for an initial term beginning on the Execution Date and- ending
5 years afterthe Execution Date. This Agreement. will be renewed automatically for two one
year terms and each succeeding year unless written notice o~ termination is provided by either
party to the other no less than 60 days before the end of such Agreement year.
The fee amendment specified in section 7 of the Agreements will take effect in the calendar
quarter following the Retirement Corporation's receipt of one: fully-executed copy of this
Amendment based upon the following schedule:
- Received byFebruary 20: Effective April
- Received by May 20: Effective July
- Received by August 20: Effective October
- Received by November 20: Effective January
In all other. respects, the- Agreements are hereby ratified and affirmed.
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IN WITNESS WHEREOF, Employer has caused this Amendment to be executed by its duly authorized officer
this day of _L', 20Q4.
CITY OF VERNON
By' ~ Attest :
.Bruce V. Ma en orst
Print ame: 3:Zei~b:~m.s~;CC"}Malburg City Clerk
Title: Mayor
- Approved As. to Forme
Eric res h, City Attorney
ICMA RETIltEMENT CORPORATION
by:
~t~
Paul Gallagher
Corporate Secretary
SUPPORTING
DOCUMENTS
r ~
d
~ . ~ ,
pity of Vernon
Section 457 Deferred Compensation Plan
November 7, 2003
Presented by
The ICMA .Retirement Corporation
Shawn Baker
Re#irement Plans Specialist
Tel: (310) 379-2773
Fax: (370) 379-7703
Email: shaker@icmaro,org
Corporate Headquarters
777 North Capitol Street, NE
Suite 600
Washington, pC 20002-.4240.
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The City of Vernon, California
Section 4S7 Deferred Compensation Plan
Table of Contents
Executive Summary ................................................................................1
Reduced Fees ..:...............................................................:......................3
Employee Education .......,.........6
Value-Added Service ............................................................................10
Technological Services .........................................................................16
Quality Investments ...................................................:.........................22
Commitment to the- Public Sector ........................................................30
- ~ I C M A R E~T I REM ENT C O R P O R A T I O N - j
ti i
I
The City of Vernon, California
Section 457.Deferred Compensation Plan
Executive Summary
The ICMA Retirement Corporation:
A Dedicated Partner for You, and Your Employees
As one of the City of Vernon's retirement plan providers, the ICMA Retirement Corporation (RC)
welcomes this opportunity to describe the advantages of selecting us as-your exclusive provider
of-457 plan educational, administrative, and investment management services.
RC is the only firm in the nation dedicated to serving the public sector exclusively, and we
stand alone in our singular focus on meeting the retirement needs of public sector employees.
Highlights of how we can add value to the City's program are summarized below:
Reduced Fees: The City RC will implement a fee reduction program to eliminate the plan
can. greatly reduce the administration fee In the fourth year of our relationship as sole provider for
cost of participation in ~ your program.
.the plan. Our proposed fee reduction will provide significant value to your plan.
Based on current assets served and the $i million that will be transferred to
our service, the reduction and eventual elimination of our plan
administration fee will save the City more than $300,000 over the next flue
ears.
Employee Education: ~ On-site educational seminars and individual consultations by a salaried
The value of your representative who currently serves the City.
program is maximized Communication materials designed specifically for public sector employees.
when participants are Website focused on enhancing participant knowledge; includes interactive
fully knowledgeable on tutorials with streaming video.
how to use the Ian.
Value Added Service: RC is a "one-stop-shop" provider of comprehensive services.
RC is committed to Participant payout options are the most flexible allowed by law.
providing the City with Access to a comprehensive range of mutual funds that are selected and
.the best possible service: .monitored by a team of experienced investment professionals.
Legal and regulatory changes, as well as new Federal legislative
developments, are communicated in the Employer Bulletin and through
our Vanta eLink website. '
Technological ~ Personal available toll-free from NASD registered Investor Services
Services: RC maintains Representatives.
a leading-edge suite of State-of-the-art Internet and voice response transaction and information
services for the City's delivery systems.
plan. Web-based Vanta9eView account aggregation service.
Independent investment advice from Morningstar Advice Online* for
those wishin additional uidance in desi nin ortfolio.
uality Investments: ~ Eight investment options actively managed by multiple subadvisers where
.ICMA R E T I R E M ENT CORPORATION Z
. y
The City of Vernon, California
Section 457 iDeferred Compensation Plan Executwe Summary
~ •
The City can offer its 457 appropriate, '
plan participants a-full Five passively managed index funds.
range of investment , Five lifestyle model portfolios covering a broad risk-return spectrum.
options designed •
. specifically for retirement Access to a number of brand name mutual funds.
:investment.
Commitmen# to the ~ RC is anot-for-profit corporation serving public employees exclusively.
Public Sector: Asa RC's program is endorsed by 19 public sector organizations, including the
governmental entity, the National League of Cities, the'Government Finance Officers
.City wants a provider Association, the American Society for Public Administration, and
with a proven many others.
commitment to public RC maintains the Vantagepoint Public Employee Memorial
employees. Scholarship Fund for spouses and children of government employees
killed in the line of du
These are just a few of the strengths and enhancements we bring to the City of Vernon. We
look forward to your review of our proposal, and to providing additional information upon your
request..
*Morningstar Advice Online is an independent provider of investment advice not affiliated with the ICMA Retirement Corporation.
Investment advice and analysis tools are offered to participants through the ICMA Retirement Corporation, a federally registered
Investment Adviser.
ICMA RETIREMENT C O R P O R A T I O N 2
The City of Vernon, California
Section 457 Deferred Compensation Plan
Reduced Fees
RC currently charges an administration fee based on assets served, average participant
balances, and services provided. We currently assess an administration fee of 0.55% on all
assets in the City's plan as co-provider.
In the event the City of Vernon selects RC as its sole provider of deferred .compensation plan
administration and- investment management services, RC proposes to reduce the annual plan
administration fee as follows:
.Year 1: 0.22%
Year 2: 0.15%
Year 3: 0.08%
Year 4: Plan administration .fee eliminated
In addition our current 0.15% mutual fund services fee will be eliminated and expenses on our
.index funds will be reduced by 0.20%.
This proposal is based on the transfer of approximately $1 million from the current co-provider
with afive-year exclusive contract with one-year annual renewal each year after, and consistent
usage of EZLink for remittance of funds and data transfer.
At RC, we believe the City and .its participants should not be penalized with fees and restrictions
merely fore withdrawing assets from our program. We therefore have no front-end loads,
deferred sales charges, or market value adjustments in the RC program. We support all efforts
to eliminate these expensive. and inflexible restrictions on participants' funds, and we encourage
all members of the pension industry to .remove these impediments to the effective long-term
investment and. disbursement of public employee retirement savings.
The following are fund-specific fees and expenses that are also incurred by participants:
,
Vanta eTrust Growth Fund Lar a Growth 0.92%
VT American Centu Ultra° Lar a Growth 0.99%
VT Putnam Vo a er Fund Lar a Growth 0.96%
Vanta eTrust 500. Stock Index Fund Lar a Blend Q.28%
Vanta eTrust Broad Market Index Fund Lar a Blend 0.30%
Vanta eTrust Growth & Income Fund Lar a Blend 0.85%
VT Calvert Soclal Investment Fund Lar a Blend 1.29%
VT Fideli Contrafund° Lar a Blend 0.99%
ICMA RETI REM ENT CORPORATION I 3
The City of Vernon, California
Section 457 beferred Compensation plan Reduced Fees
VT Fideli Ma ellan® Fund Lar a Blend 0.76%
VT MFS Lar a Com an Growth Fund Lar a Blend ~ 0.94% .
Vanta eTrustE ui Income Fund Lar eValue - 0.93%
VT Lord Abbett Lar a Com an Value Fund Lar a Value 0.85%
Vanta eTrust A resslve 0 ortunities Fund Mid-Ca Growth 1.19%
Vanta eTrust Mld Small Co Stock Index Fund Mid-Ca Blend 0.34%
VT American Centu .Value Fund Mid-Ca Value 1.00%
VT Gabelli Value Fund Mid-Ca Value 1.40% .
VT INVESCO Small Com an Growth Fund Small Growth 1.45%
VT T. Rowe Price® Small Ca ~ Stock Fund Adv Small Blend 1.19%
VT T. Rowe Price® Small-Ca Value Fund Adv SmaII Value 1.06%
VT ]anus Adviser Series Worldwide Fund World Stock 1.20%
Vanta eTrust International Fund Forei n Stock 1.21%
Vanta eTrust Overseas E ui Index Fund Forei n Stock 0.51%
VT Putnam International E ui Fund Forei n Stock 1.16%.
Vanta eTrust PLUS Fund Stable Value 0.47%
Vanta eTrust Cash Mana ement . N A 0.65%
Vanta eTrust US Government Securities Intermediate Govt. 0.62%
Vanta eTrust Core Bond'Index Intermed Term Bond 0.29%
VT pIMCO Total Return Bond Fund Intermed Term Bond 0.68%
VT PIMCO Hi h Yield Bond Fund Hi h Yield Bond 0.75%
I
Vanta eTrustSavin s Oriented Domestic H brid 1.03%
I
Vanta eTrust Conservative Growth Domestic H brid 1.02% ~
Vanta eTrust Traditional Growth Domestic H brid 1.05%
Vanta eTrust Lon -Term Growth Lar a Growth 1.01%
Vanta eTrust All-E ui Growth Lar a Growth 1.18%
Vanta eTrust Asset Allocation Domestic H brid 0.76%
VT Fideli Puritans Fund Domestic H brid 0.64%
1 Categories are from Morningstar as of 3/31/01 for underlying funds where available. Category, for the PLUS Fund was determined
by ICMA-RC based on underlying fund characteristics. * Morningstar, Inc.° provides independent analysis of open-ended mutual
fund companies and Is not affiliated with the ICMA Retirement Corporation ("ICMA-RC's. For each fund with at least athree-year
history, Morningstar calculates a Morningstar Rating (based on a Morningstar Rlsk-Adjusted .Return measure. that accounts for
varlatiorr in a funds monthly pertormance (including the effects of sales charges, loads and redemption fees), placing more emphasis
on downward variations and :rewarding consistent performance. The top 10% of funds In each category receive 5 stars, the next
22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Niglily rated
funds are defined as those that have a four or five star Morningstar rating. Data provided by Morningstar, Inc.®. All rights reserved.
The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is
not warranted~to be accurate, complete or timely. Neither Morningstar nor its content providers nor ICMA-RC are responsible for any
damages or losses arising from any use of this information. This information is being provided for informational purposes only and is
not Intended as or to be relied upon as investment advice or the solicitation or offer' of a particular product or service. ICMA-RC does
not review the Morningstar data and, for mutual fund performance information, you should rnnsult the specific fund's current
prospectus for additional Information concerning, fees, expenses and trading restrictions.
ICMA RE~TiREM ENT C0RPgRATION 4
-The City of Vernon, California
Section 457 Deferred Compensation Plan Reduced Fees
s VantageTrust ,Mutual Fund Series expenses (applied to funds which are denoted with a "VT" at khe start of the fund name) are
based on data derived from the underlying .fund's current prospectus as of 2/28/03. VT Fidelity Magellan° is closed to new plan
sponsors. Expenses are subject to change. Please consult-both the current specific fund's prospectus and Making Sound Investment
Decisions: A Retirement Investment Guide for. a summary of all fees, expenses, retained revenue reimbursemehts and #rading
.restrictions carefully prior to investing any money, Vantagepoint securities are distributed by ICMA-RC Services, LLC, abroker-dealer
affiliate of ICMA-RC, member NASD/SIPC. ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240.
1-800-669-7400. www.icmarc.org.
ICMA RETIREMENT C O R P O R A T I O N $
1
The City of Vernon, California
Section-457 peferred Compensation Plan
Employee Education
At RC we call ourselves "The Learning Organization," because we are committed to participant
education.
We believe that informed participation is crucial to the success of your pension program.
Accordingly, we developed our curriculum of seminars and educational materials with. one aim
in mind: helping public sector employees make informed retirement investment decisions.
Enrollment and Educational Group Meetings*
Focus groups have shown that many employees do not participate in their retirement plans for
fear of making mistakes in their investment choices. To counteract this concern, a strong
employee education program is essential.
The ultimate success of your program is measured by the added retirement benefit achieved by
employees participating in the plan. RC offers a clear, concise, dynamic educational program
that includes group meetings, individual consultations, and periodic publications to help
participants become successful investors.
Mr. Shawn Baker; your RC Retirement Plans Specialist, conducts group educational meetings to
discuss retirement planning, the investment options available, and the specific features of your
program. Our on-site Investment Education Series enhances the value of, your -plan as an
employee benefit by giving participants the knowledge they need to make key decisions. This
series, which is customized to your specific requirements, may include. the following courses:
¦ Fundamentals of Investing Part I. This. course is targeted at the novice investor, and.
explains the effects of risk on investments and how to manage investments to reduce risk.
¦ Fundamentals of Investing Part II. This course builds orr the information discussed in
Part I, and covers more advanced topics. Participants learn how to read a prospectus, and
how to monitor and evaluate fund. performance.
• Retirement Planning. In this course, participants set retirement goals and estimate
assets available far retirement using our publication Charting Your Course.
¦ Fundamentals of a Retirement Plan. This workshop covers the basics of the plan, from
current tax benefits to eligibility for withdrawal. An emphasis on how the plan works and
the investment options available make this an excellent.workshop for new participants.
¦ Understanding .Your Funds. This .course offers detailed information about. each of the
investment options available. Topics include fund characteristics, total fees, and historical
performance.
ICMA RETIREMENT CORPORATION. 6
}
.The City of Vernon, California
Section 457 Deferred Compensation Plan Employee Education
¦ Understanding the VantageLiink Website. This class is designed to walk individuals '
through VantageLink; the ICMA Retirement Corporation's website. Participants 'who take
this course emerge with a thorough understanding of the retirement planning tools -that are
literally at their fingertips..
Withdrawal Options. -This course explains. the available- withdrawal options for
participants nearing retirement age.
¦ Specialized Workshops. Customized seminars can also be developed to meet the specific
needs of your employees. For example, we developed a course on Retirement Planning
Issues for Women,` which reviews areas of unique concern to women, such as longer life
expectancies, interruption of working careers, and wage differentials.
* Seminars are provided for educational purposes only and. is not intended to be construed as or relied upon as investment advice.
The ICMA Retirement Corporation does not offer specific tax or legal advice. Investors should seek financial advice regarding the.
appropriateness of investing in .any securities or investment strategies discussed or recommended. Please consult both the current
Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully prior to
investing any money. Vantagepoint securities are distributed by ICMA-RC Services, I.LC, abroker-dealer affiliate of ICMA-RC, member
NASD/SIPC. ICMA-RC Services, I.CC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. '
Education Pays Off:
Our Participants Understand Their Time Horizons and Risk Tolerance
Under 35 35-45 46-55 56-65 Over 65
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Individual Consultations
Following the group presentations, your Retirement Plans .Specialist provides individual
consultations to offer unbiased assistance in the selection of investment options -and completion
of enrollment materials.
One-on-one counseling sessions focus on the financial concerns of individual participants. Using
oul• proprietary benefit .calculation software on a laptop computer, Mr. Baker performs
personalized benefit and tax savings illustrations for each participant. Our benefits calculation
program performs two main functions:
ICMA RETIREMENT CORPORATION I 7
The City of Vernon, California
Section 457:Deferred Com ensation Plan Em to ee Education
i
Illustrations. Benefit and tax-savings illustrations are based on a participant's age, Salary,
employee pre-tax deferral rate (if applicable), the amount required at retirement, and
disbursement schedule. The maximum deferral amount, incorporating an assumed .cost-of-
livingincrease, is also shown.
¦ investment information. Investment information helps employees determine which
options or investment strategies are best for them, given their level of risk tolerance and
time horizon.. The desired return rates determine the projected. yield and targeted amount
to save.
These personalized illustrations show the effect that various- contribution and investment
allocation scenarios can have on potential benefits. All illustrations can be printed in .hard copy
for employees' records. This distinguishing feature of the RC program helps participants design
a portfolio that meets their retirement goals.
As anon-commercial provider of public sector retirement services, we have the independence
necessary to provide service that is focused on meeting pour em Ig_oyees' needs. Our
.representatives have no economic incentive to favor any investment products or withdrawal
options over others.
Communication Ma#erials
All of the materials we provide to you and your employees were designed specifically for public
retirement plans. Our materials seek to educate participants-not "sell" products. We provide
.your employees with the following educational guides:
Educational Publications
¦ RC 457- Plan .Employee Enrollment-Kit. Contains educational .brochures and all the
forms participants need to enroll in the plan.
• A Tax Shelter .for Your Future. Provides a summary of 457 deferred compensation
retirement plans.. .
¦ Charting Your Course: A Retirement Planning Guide for Public Sector Employees.
Thin retirement savings kit helps participants set savings goals based on estimated
retirement expenses and assets.
¦ Fund Option Sheet. Reviews -the investment options administered by the Retirement
Corporation,. and describes each fund's. portfolio, objective, and risk level.
ICMA RE71 REM ENT CORPORATION I $
The City of Vernon, California
Section 457 Deferred Compensation Plan Employee Education
Newsletters
¦ The Vantagepoint. Our quarterly participant newsletter that discusses market trends, new
plan features and services, regulatory developments, and other issues.
¦ Vantagepoint Perspective. Our online newsletter that provides .current fund
performance, benchmarks, and data on the funds of the VantageTrust.
• Employer Bulletin. Our monthly employer newsletter that contains the latest, regulatory
changes and other information that affects plan sponsors.
Transactional Publications
• Managing Your Account Has Never Been Easier. Our brochure that describes how to
use our tall-free information line and how to access and use our comprehensive Internet
services.
¦ 457 Deferred Compensation Plan Withdrawal Packet. Describes -all of the options
available for withdrawal and works through the completion. of each form included in the
packet,
Investment Fund Disclosure
¦ Vantagepoint Funds Prospectus. Provides information, on the Vantagepoint Funds,
including specifics on.the types of investments, investment managers, fees, expenses, and
other pertinent data.
• Making Sound. Investment. Decisions: A Retirement Investment Guide. Provides
specific information about the types of investments, investment managers, fees, expenses,
and other pertinent data about the VantageTrust.
¦ VantageTrust Annual Report. Provides specific information to participants on the
financial performance, of investments through the VantageTrust., Includes the audited
financial statements for the Trust.
I C M A R E T I R E M ENT C O R P O R A T I O N 9
The City of Vernon, California
Section 457 Deferred Compensation Plan
Value-Added Service
The RC Philosophy: ACustomer-Oriented Approach to Client Service
The ICMA Retirement Corporation has a fundamental mission: to provide .the highest quality
retirement .plan administration and investment management services at the lowest possible
cost. Since .our inception in 1972, we have remained true to that original vision. These are just
a few :examples of our philosophy at work:.
¦ Our programs have never had any type of market value adjustment or discontinuance
charge-either on aparticipant- or plan-level basis.
• We voluntarily lower fees as plan characteristics, economies of scale, :and productivity
. improve. Plan service components have been continually added without charge.
¦ We have independent, unbiased relationships with .investment firms and mutual funds
contracted. to supply investment management.
On-site representatives are non-commissioned. This ensures that your employees. receive
unbiased financial planning assistance, since the compensation of our representatives is not
affected by participant investment/disbursement decisions..
¦ The aggregate investment allocation among our 600,000 participants is comparable to that .
of institutionally managed defined benefit plans (employee investors with access. to strong
defined benefit plans rarely select annuities).
• Our state-of-the-art OmniPlus recordkeeping system meets the administrative service
requirements of our plan sponsors. Automated transactions and instant access to
plan/participant account information are just the beginning of the services available.
• VantageLink, our website, is the only Internet site dedicated .solely, to public sector
retirement investment.. VantageLink provides .participants with the ability to make-
automated .transactions, and gives them access to sophisticated education. modules and
worksheets. We continually expand. and update the site to ensure ongoing quality of
.service.
Service Performance Standards
The ICMA Retirement Corporation is fully committed to continuing to deliver the best possible.
service to plans. and participants. Current performance standards for specific processing events
are shown in the grid on the following page:
I C M A R E T I REM ENT - C O R P 0 RATION ~ ~ I
The City of Vernon, California
Section 4S7 Deferred Compensation Plan ~ value-Added service
Contributions Same day, upon receipt of good data by 1:00 p.m. Pacific
Time
Distributions Mailed :within one business day of receipt (after all required
waitin eriods
Transfers/Exchanges Same day,. upon receipt of good data by 1:00 p.m. Pacific
Time
Investment Elections Same day, upon receipt of goad data by 1:00 p.m. Pacific
' Time
VRU and Call Center 98% of all calls within one rin
Partici ant Statements Mailed within 10 da s of uarter end
Plan S onsor Re orts Mailed within 15 da s of uarter end
Regulatory and Compliance Services
Our in-house legal staff continuously monitors regulatory and statutory requirements.
The responsibility of our in-house compliance department is to ensure that our processing
environment is in compliance with .applicable 5EG, NASD, and IRS requirements. All
documents, including our plan documents, are reviewed and updated as needed. In addition,
we perform numerous :tests to ensure compliance with plan and Internal Revenue Code
provisions, including checks. for participant adherence to minimum ,distribution requirements.
RC reports, on legal and .regulatory changes affecting public sector retirement plans to .plan
sponsors via our monthly Employer Bulletin and on our VantageLink website: Other RC
legislative publications and services include:
¦ EGTRRA: A Guide for Public Employers, our publication that provides a comprehensive
overview of how the new legislation affects your plans.
• Pension Portability Unit, our toll-free information center staffed by live representatives
available to help participants understand the new rules and determine the best course of
action.
• Legislative Action Center, our interactive online legislative research service, features the
Today in Congress legislative news. update, a search function on current bills and
legislation, and an email service that allows participants to send a message to Congress to
support important 457- and 401 plan provisions in future legislation (suggested letters
included).
ICM A RETIREMENT CORPORATION 11
The. City of Vernon, California
Section 457 Deferred Compensation Plan value-Added Service
-RC's. Fully Flexible Payout Options
RC offers the most flexible selection of payout options allowed by law. Participants may specify
a fixed period over which to receive benefits, a fixed amount to receive each month, or another
payment. schedule of their choice, consistent with IRS regulations. Participants who receive
regular distributions .can have their payments electronically deposited- directly to their bank
accounts. Examples of available payment schedules include:
• Lump sum payment of accumulated assets
¦ Rollovers to other plans or to an IRA consistent with the Internal Revenue Code
• Monthly, quarterly, semiannual or annual payments based on participant-selected schedule:
¦ Specified amount at regular intervals until the account balance is depleted
¦ Fractional payments to ensure account depletion over a defined period of time
¦ .Declining payments within Internal Revenue Code minimums
• Internal Revenue Code minimum, recalculated annually
¦ Payments estimated to deplete the account over a specified number of years ,
• Payments estimated to deplete the account over the life expectancy of the participant,
participant and spouse, ar beneficiary
• COLA (cost-of-living-adjusted) periodic payments for §457 plans, which increase at the
beginning of each calendar year, at the rate of increase of the Consumer Price Index for
All Urban Consumers (CPI-U)
¦ Combination of lump-sum and periodic payments
Partial or full anntaitization through RC's Income for Life Program*, which offers access
to lower cost "group: rate" annuities from multiple providers
Additionally, during distribution participants can:
¦ Select the order of investment funds to be depleted
¦ Transfer funds among investment options
In addition, RC never levies hidden deferred sales charges or stable value adjustments:
participants leaving the Plan may withdraw all- assets without RC-imposed charge or
penalty. The amount that an individual participant can withdraw, or the amount available to
eligible beneficiaries, is always equal to the full value of-the participant's account at
time of disbursement, never less.
* Annuities are Insurance products available through companies not affiliated with the ICMA Retirement Corporation: Please consult
"Income for Life Annuity Program: Immediate Annuities for Retirement Income," prior to purchasing an annuity. 1-800-669-7400.
I C M A R E T L R E M E N T CORPORATION - 1T
The City of Vernon, California
Section 457 Deferred Compensation Plan ~ Value-Added Service
Standard. Plan Sponsor Reports
RC provides the City with the following reports as a standard feature of our program:
¦ Quarterly and Annual Employer Statements. Statements provide a summary of plan
contributions, investment gains and- losses, disbursements, fund .transfers, and beginning
and ending balances.
¦ Monthly Employer Bulletin. Newsletter containing the latest regulatory changes and
specific information that affects employers.
¦ Vantagepoint Perspective.. Our online quarEerly investment newsletter that provides
current fund performance, benchmarks, and data on the funds of the VantageTrust.
¦ The RC Employer Manual.- A complete reference of RC's services is available .online at
www.icmarc.ord. Acondensed hardcopy'EmployerEuide is also available.
Custom. Plan Sponsor Reports
We can also prepare customized hard copy reports upon request based on information retained
by our system. Customized. reports of reasonable. quantity and complexity are provided at no
.extra cost. RC is developing flexible online employer reporting .and download capabilities for
release later this year, The following data is now available online:
Plan Information
¦ Plan balances by investment as of the most recent business date
¦ plan level investment allocations
¦ Pie chart of plan investments by age range
¦ Contribution transactions for various date. ranges for the plan
Transactions by type summarized for various date ranges for the plan
¦ Participant addresses for participants by specified status. or for aIF participants
¦ Daily share prices and short-term investment performance measures
¦ Total return performance in the SEC."standardized" presentation
¦ A library of RC publications
ICMA' RETIREMENT CORPORATION 13
The City of Vernon, California
Section 457 Deferred Compensation Plan Value-Added Service
Participant Information
¦ Account balance by investment
¦ . YTD contributions and contributions by specified date range
• Allocation percentages
¦ Statements on demand
¦ Personal information (name, address, birthdate etc.)
Standard Participant Reports
RG provides the City's employees with the following reports. as a standard feature of our
program:
¦ Quarterly statements of account activity showing. contributions, investment gains. and
losses, disbursements, fund transfers, service charges (if applicable), and beginning and
.ending .account balances.. In addition, participant statements include pie charts depicting
asset allocations, and a calculation of the internal rate of return the participant achieved in
the account.
¦ The Vantagepoint, our quarterly participant newsletter, .discusses investment issues,
market trends, new plan features and services, regulatory developments.
Custom Participant Reports
VantageLink, the RC website at www.icmarc.ora, offers participants online access, to
account information arid. automated reporting capabilities, including:
Account Information
¦ .Holdings and prices (updated daily)
¦ Statements on demand
¦ Investment performance (numerically and on charts)
¦ Pie charts of participant investment allocation
ICMA RETI REM ENT CORPORATION 14
The City of Vernon, California.
Section 457 Deferred Compensation Plan value-Added Service
Plan Information
• Articles from experts in retirement personal finance
• Publications, including MarketView, that provide in-depth commentary and investment
resources for long-term investors.
¦ Chart of the Week
¦ Fund descriptions, including objectives, strategies, risk, and ubadvisers
¦ 457 plan features
• Legislative updates
¦ Library of retirement articles
• Glossary
ICMA RETIREMENT CORPORATLON 15
The City of Vernon, California
Section 457 Deferred Compensation Plan
.Technological Services
Toll-Free Participant Telephone Access
We offer participants the. following toll-free telephone services:
¦ VantageLine. Our VantageLine voice response unit allows participants to make automated
transactions and access. account information 24 hours a day. Participants can transfer funds,
change investment allocations, and obtain information on account balances, fund allocation,
current rates, and investment performance, as well as vesting- status and outstanding
amounts- on RC-administered loans.
¦ Investor Services Representatives. Our registered Investor Services Representatives
have immediate online access to plan data and participant account information. They can
answer your employees' questions about:
¦ Investments Reallocation
¦ Account status Transactions
¦ Account balances Loan status.
¦ Current investment allocation Benefit payments and tax withholding
Investor Services Representatives can provide benefit illustrations, carry out instructions to
reallocate contributions, transfer. assets between funds, and initiate loans. Representatives are
available from 5:30 AM to 6:00 p.m. Pacific Time.
¦ .TDD Line. We provide atoll-free TDD line for hearing-impaired participants. To access
account information, the participant dials the TDD line and keys in the inquiry; an Investor
Services Representative answers by typing in a response.
¦ Help for Non-English Speakers. We also provide atoll-free line for Spanish-speaking
participants featuring bilingual Investor Services Representatives. An additional -140
languages can be accommodated through AT&T's Language Line translation service.
Toll-Free Employer Telephone Access
Our specially designated employer service representatives,are trained to support the day-to-day
needs of plan sponsors. -They assist you with answers to general and technical plan questions,
plan adoption,and implementation procedures, regulatory changes, contribution submittals, and
orders for .publications and forms. Employer representatives are available Monday through
Friday, from 5:30 AM to 4:30 p.m. Pacific Time.
~ ICMA RETIREMENT COR.PORATIO'N~ _ 16-
The City of Vernon, California
Section 457 Deferred Compensation Plan Technological Services
Internet Access
VantageLink, the RC website at www.icmarc.ora, offers participants access to account
information and automated transaction capability online. We were the first vendor in the public
sector retirement plan industry to offer participants access to account data over the Internet,
-and we continuously .strive to enhance the utility- of this powerful communications -tool.
VantageLink offers the following features for your participants:
Accounts
¦ Holdings and prices (updated daily)
Statements on demand
¦ Investment performance (numerically and on charts)
• Pie charts of participant investment allocation
Transactions
¦ Fund transfers
¦ Contribution allocation changes
¦ Rebalance to contribution allocation
¦ E-mail to the Retirement Corporation
Learning Center
• Online classes
¦ Articles from experts in retirement personal finance
¦ Publications, including MarketView, that provide in-depth commentary and investment
resources for long-term investors
¦ Financial planning calculators*:
¦ ,Autos Credit line • IRA-Roth vs. traditional
• Budgeting Home Retirement planning
• Credit cards ¦ Insurance Savings
* These calculators are designed to provide general assistance in making informed decisions, Their accuracy Is not guaranteed
and some results may vary' from those provided by other systems.
I C. M A R.E T I REM E N T C O R P O R A T I ON i7
The City of Vernon, California
Section 457 Deferred Compensation Plan Technolo ical Services
Legislative Action Center
¦ Instructions on how to contact the Legislature, the Executive Branch, and the Judiciary
¦ Today in Congress
¦ Search enginefor bills and legislation
¦ E-mail messaging to Congress to support important plan provisions in future legislation
(suggested letters included)
MarketView
Latest investment perspective from Girard Miller, RC President and CEO
¦ Latest Investmentlnsightfrom John Tobey, Vice President and CIO
¦ Chart of the Week
¦ Sites on:
¦ Economic environment. Investment barometers
¦ Equity markets Investment resources
Additional Information
¦ .Fund descriptions, ,including objectives, strategies, risk, and subadvisers
¦ 401 and 457 plan feakures
• Legislative updates
¦ Library of retirement articles
¦ Glossary
Quote-Service
• Stock quotes
¦ Portfolio tracking
¦ Custom news
¦ Personal home pages
~~~ICMA RETIRE MENT CORPORATION I
The City of Vernon, California
Section 457 Deferred Compensation Plan Technological-Services
• Email alerts
• Chart stocks & indices
• Market commentary
IRA Wizard
Available. online at our VantageLink website, the VantageLink IRA Wizard makes setting up an
IRA- as easy as clicking your computer mouse. This new online application takes participants
step-by-step through the process: of establishing a new Vantagepoint Roth, Traditional, or
rollover IRA-and even handles rollover requests from other financial institutions as well as '
from RC.
¦ Open a Vantagepoint Roth or Traditional IRA
¦ Consolidate retirement assets:
¦ Roll over 457, 401; or 403 plan. assets. from another provider
Roll over RC-administered 457 or 401 plan assets
• Combine IRAs into one easy-to-manage Vantagepoint IRA
¦ .Fund an IRA online
Online Investment Advice
Available at our VantageLink website, RC offers portfolio allocation recommendations as well as
independent investment advice through Morningstar Advice Online*.
We have partnered with Morningstar Advice Online to offer employees online access to
investment advice and recommendations based on the investment options- under their plan.
With Morningstar Advice Online's user
friendly platform, RC integrates data from our
systems with additional data entered by participants.
-Two. levels of service are available:
¦ PortfolioBuilder. PortfolioBuilder is aservice from RC that allows employees to complete a
personal profile and receive a recommendation on how to allocate investment among
different asset classes. It then compares the recommendation with the current asset class
allocation. Users may also choose from various strategies to see how RC's funds can be
used to implement the recommendation
~ I C M- A R E T I R E M ENT -C O R P O R A T I Q N Z9 - .
The City of Vernon, California
. Section 457 Deferred Compensation Plan Technological Services
¦ .Morningstar Advice. Online Personal Advisor.* Personal Advisor is offered through-
- Morningstar, one of the nation's leading providers of online .investment advice. Based on
the information .you provide, it gives independent advice based on all of the funds available
through the City's plan. Additiolnally, Morningstar Advice Online Personal Advisor contains
modules that allow the user to enter information pertaining to his or her retirement
investments and receive. projections on how much they may need for retirement, as well as
how much they may accumulate based on their. present situation. Users can also change .
certain variables to see how their projection is affected.
PortfolioBuilder is available free of charge: Morningstar Advice Online* will be free for our first
year as sole provider for the plan and will subsequently be available for an annual fee of $35 to
the user. As described below, participants in our VantagePoints program may apply their
VantagePoints to offset the cost of Morningstar Advice Online Personal Advisor.
*Morningstar Advice Online is an independent provider of investment advice not affiliated wlth the ICMA Retirement Corporation.
Investment advice and analyslS tools are offered to participants through the ICMA Retirement Corporation, a federally registered
Investment Adviser.
EZLink Employer Online Services
RC is committed to offering the most robust Internet services in the. industry, and we believe in
using its power to provide plan sponsors with comprehensive- and detailed plan information.
Our EZLink (www.icmarc.org) Internet service offers customized electronic access to plan
data that -can be used as a critical tool to fulfill your fiduciary. responsibility as a plan 'sponsor.
We also provide the ability to implement transactions electronically to enhance your
administrative efficiency.. RC currently provides plan sponsors the following plan level activity
online:
Plan Information
¦ Plan balances by investment as of the most recent business date
• Plan level. investment allocations
• Pie-chart of plan investments by age range
• Contribution transactions for various date ranges for the plan
¦ Transactions by type summarized for various date ranges for the plan
• Participant addresses for participants by specified status or for all participants
¦ Daily share prices and short-term investment performance measures
¦ Total return performance in the SEC ~~standardized"presentation
ICMA RETIREME NT CORPORATION 2O
i
_ I
-The City of Vernon, California
Section 457 Deferred Compensation Plan Technola~cal Services
¦ A library of RC publications
Participant Information
¦ Account balance by investment
YTD contributions and contributions by specified date range
¦ Allocation percentages
¦ Statements on demand
• Personal Information (name, address, birth date etc.)
Automated Transactions
RC's EZLink Internet service provides plan sponsors the ability to streamline operations, speed
processing, and reduce paperwork. This service currently. includes transmission of:
• Employer-approved enrollments
¦ Contribution data
¦ Participant data (name and address changes)
Plan Administration
i
¦ Ability to create custom messages that appear in Account Access for all participants or
specific participant
• Change Plan Contact names and specify functions allowed within. EZLink 'I
• View previous payroll submissions
ICM A RETIREM ENT CORPORATION 21
The City of Vernon, California
Section 457 Deferred Compensation Plan
Competitive Investment Products
The Retirement .Corporation .has been helping -local government employers meet their
employees' retirement investment needs since 1972.
The RC Investments Division has over 175 years of combined investment. experience. -Our
commitment to customized institutional consulting and education has enabled us to create
answers to the investment issues faced- by our clients every day.
The value of these services is quantifiable. In 1993, we initiated a nationwide effort to .provide
asset. allocation tools, and .promoted long-term investment in strategically diversified. portfolios.
The benefits of education are apparent in the evolution of the distribution of assets in the RC
program:
Total VantageTrust Investment Allocation: 1993 vs. 2002
xt
}
s,+.. ~
Participant Asset Allocation in 1993 Participant Asset Allocation in 24Q2
RC believes that diversified investment, consistently applied toward specified goals, is the best
way to help youremployees meet their retirement objectives.
In keeping with this philosophy, we offer a-wide array of investment products suited to different
investment styles and strategies. And we offer further support by providing the educational
resources .participants need to make informed decisions. Our approach to participant education
is designed to help .your employees reach a level of sophistication where they- will feel
comfortable using the tools we provide to reach their investment goals.
Our fund offerings* are structured along multiple tracks that attempts to meet the needs of all
investors as they design investment programs`that meet their specific objectives, levels of risk
tolerance, and time horizons:
*Please consult both the current specific fund's prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment
Guide carefully. prior to investing any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer
afflllate of ICMA RC, member NASD/SIPC. ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-
. 669-7400.
.ICMA RETIREM ENT CORPORATION Z2
The City of Vernon, California
Section 457 Deferred Compensation Plan Quality Investments
¦ Lifestyle-type funds for, those who want their investments automatically diversified in a
defined and consistent manner.
• Index funds that: provide low-cost access to equity, bond, and international markets, and
are designed to closely track a broad and defined market.
¦ Institutionally managed mutual funds that often blend the. styles of multiple managers
in an effort to invest at the optimal point on the efficient frontier.
¦ A series of funds that invest in nationally recognized retail mutual funds.
IZC: the Manager of Managers
.With the exception of the stable value PLUS Fund, which is managed by RC, assets of all funds
are managed by independent, external managers hired to invest .toward defined objectives.
This approach allows us to focus exclusively on the interests of .our participants-and provides
the flexibility to make changes as manager abilities, markets,: and investor needs evolve. Our
investment group of fourteen professionals, with a combined total of over 175 years of
institutional investment experience, is responsible for the selection and monitoring of these
outside managers.
-Our philosophy of diversified and. consistent investing, however, is best .exemplified by the
institutionally managed Vantagepoint Funds. Where possible, multiple. managers are employed
to blend styles in an effort to invest at the optimal risk/return point (the efficient frontier).
Individual managers within a fund are replaced as necessary, ..which. prevents the disruption
participants typically experience when retail mutual funds are removed from a program.
The Model Portfolio funds are structured. to give participants consistent asset allocations in a
fashion similar to defined benefit plan management. Allocations among Vantagepoint funds are
defined and assets are reallocated quarterly, or more frequently, when allocation shifts exceed
defined parameters.
VantageTrust Funds*
VantageTrust. Funds are exclusively available through our program and are structured to offer
the core risk/return options needed for any investment portfolio. Each of the VantageTrust
:Funds is invested solely in the shares of a single underlying Vantagepoint Fund, which-has the
same investment objectives as the corresponding VantageTrust Fund.
* Please consult both the current specific fund's prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment
Guide carefully prior to investing any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer
affiliate of ICMA RG, member NASD/SIPC. ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-500-
669-7400.
ICMA RETIREM ENT CORPORATION $3.
The Gity of Vernon, California
Section 457.Deferred Compensation Plan Quality Investments
The first Vantagepoint Funds were registered on March 1, 1999. Predecessor funds operated
prior to that date with an exemption from the SEC. The following chart lists the subadvisers of
-the Vantagepoint Funds, also indicating the inception date of the predecessor fund.
,
VantageTrust Growth Fund Large Growth Seeks capital growth through stocks with above- Fidelity Mgmt Trust Co. •
average potential for corporate earnings growth and Barclays Global Investors
by applying a growth strategy. Tukman Capital Mgmt. .
Brown Capital Mgmt.
Pere rlne Ca ital M mt.
VT American Century Large Growth Seeks aggressive growth of capital by investing in American Century
Ultra° Funds stocks with rester than avers a rowth ros ects
VT Putnam Voyager Fund Large Growth Seeks rapid growth of capital through small-to-mid- Putnam Management
sized cam anies.
VantageTrustS00 Stock Large Blend Seeks growth by paralleling the large cap S&P 500 Barclays Global Investors
Index Fund Index.
VantageTrust Broad Large Blend Seeks long-term growth by paralleling the broad equity Barclays Global Investors
Marketlndex Fund' Wilshire 5000 Index.
VantageTrust Growth & -Large Blend Seeks long-term growth through capital appreciation T. Rowe Price Assoc.
Income Fund. and current income.. Capital Guardian
Wellin ton Ca ital M mt.
VT Calvert Social Large Blend Seeks to invest at least 80% of assets in equity Atlanta Capital Mgmt.
Investment Fund securities including common stocks, convertible
securities and referred stocks.
VT Fidelity Contrafund® Large Blend Seeks capital appreciation through out-of-favor, Fidelity Investments
turnaround stocks with si nificant rowth tential.
VT Fidelity Magellan Large Blend Seeks long-term capital appreciation by investing in Fidelity Investments
equity securities with potential for high long-term
returns.
VT MFS Large Company Large Blend Seeks long-term growth of capital and future income MFS Investment Mgmt
Growth Fuhd3 rather than current income. Invests primarily in large-
cap stocks, but may also Invest in mid-cap and
International stocks.
VantageTrust Equity Large Value Seeks long-term growth through dividend income and T. Rowe Price Assoc.
Income Fund capital appreciation. Southeastern Asset Mgmt.
Barrow, Hanley, Mewhinney
& Strauss
VT Lord Abbett Large Large Value. Seeks long-term growth of capital and income, Lord Abbett Company
.Company Value Fund4 consistent with low volatility. It primarily invests in
large, seasoned companies that are selling at prices
the manager believes are undervalued.
I C M A RETIREMENT CORPORATION 24
The City of Vernon, California
Section 457 Deferred Compensation Plan Qualit rLInvestments
r
VantageTrust Aggressive Mid-Cap Growth Seeks long-term growth of capital by investing In T. Rowe Price Assoc.
Opportunities Fund smaller companles and utilizes both value and growth Wellington Mgmt. Co.
strategies. Southeastern Asset M mt
VantageTrust Mid/Small Mid-Cap Blend Seeks long-term. capital appreciation by paralleling the Barclays Global Investors
Company Stock Index small and. mid cap Wilshire 4500 Index.
Fund
VT American Century° Mid-Cap Value. Seeks growth by investing in stacks perceived to be American Century
Value Fundl sellin below markefvalue. Investments
VT Gabelli Value Fund Mid-Cap Value Seeks long-term capital appreciation by investing Gabelli Funds
stocks perceived to be selling at prices below market
value. May be concentrated ih a few securities.
VT INVESCO Small Small Growth Seekslong-term capital growth. The Fund normally INVESCO Funds Group
Company Growth; Fund invests at least 65% of assets in Companies with .
market ca italizations of less than 1 billion:
VT T, Rowe Price® Small Small Blend Seeks long-term capital growth by investing in the T. Rowe Price Assoc.
Cap Stock Funds stocks of rapidly growing small companles. The Fund
considers small companies as those with market
capitalizations that fall within the range of the Russell
2000 Index.
VT T. Rowe Pricey Small- Small Value Seeks long-term capital growth by investing primarily T. Rowe Price Assoc.
Cap Value Fund Advs in small-capitalization companles whose stock prices
do not appear to adequately reflect their underlying
value. The Fund invests in companies with a market
capitalization of $1 billion or less.
VT Janus Adviser Series World Stock Seeks to invest primarily in foreign and domestic Janus Capital Mgmt
Worldwide Fund stocks. It normally invests in at least five countries,
includln the U. S.
VantageTrust International Foreign Stock Seeks diversiflicatiorr and capital appreciation through Capital Guardian Trust Co.
Fund companies doing business outside the U.S. Artisan Partners
VantageTrust Overseas Foreign Stock Seeks long-term growth diversification by paralleling Barclays Glottal Investors
E ui Index Fund the non-U.S. a ui EAFE Index
VT Putnam International Foreign Stock Seeks capital appreciation. Looks to invest in Putnam Investments
Growth Fund companies of any size that it judges to be in a strong
growth trend or that it believes to be undervalued.
May invest in both developed and emerging markets.
May engage in various. hedging strategies.
VantageTrust PLUS Fund Stable Value Seeks preservation of principal and current income ICMA Retirement Corporation
through investment contracts. issued by a number of
hi h- uali com antes.
VantageTrust Cash N/A Seeks Current income through money market AIM Advisors
Mana ement Fundl instruments and short-term bonds,
ICMA RETIREMENT CORPORATION 2$
The City of Vernon, California
Section 457 Deferred Cpmpensation -Plan Quality.investments
~ -
VantageTrust US Intermediate Seeks income and return equivalent to Intermediate- Seix Inv. Advisors, Inc.
Government Securities Govt. term (5-15 years) fixed-income securities, while
Fund minimizin credit risk.
VantageTrust Core Bond Intermediate Seeks long-term capital growth and current Income. Vantagepoint Investment
Index Fund Term Bond The fund normally invests up to 75% of assets in Advisors
domestic and foreign equities. It may also invest in
preferred stocks, warrants, convertibles and debt.
VT PIMCO Total Returri Intermediate Seeks fo invest at least 65% of assets in debt Pacific Investment Mgmt.
Bond Fund Term Bond securities, corporate bonds, and mortgage related
securities.
VTPIMCO High Yield Bond High Yield Bond. Seeks to invest mainly in bonds that are obligations of Pacific Investment Mgmt.
-Fund U.S. corporations. It also typically invests in securities
that are below investment in quality and have
intermediate to, long-term maturities.
,
VantageTrust Savings .Domestic Hybrid The fund's primary investment objective is to provide Vantagepoint Investment
Oriented Fund conservation of principal, reasonable current income, Advisors
and the tential for limited rofit.
VantageTrust Conservative Domestic Hybrid Thefund's primary investment objective is to provide Vantagepoint Investment
Growth Fund conservation of principal, reasonable current income, Advisors
and small growth potential through exposure to
.stocks.
VantageTrust Traditional Domestic Hybrid The fund's primary investment objective is to-offer Vantagepoint Investment
Growth Fund capital growth with moderate risk through exposure to Advisors
domestic and international stocks.
VantageTrust Long-Term Large Growth The fund's primary objective is to offer significant Vantagepoint Investment
Growth- Fund growth potential through substantial exposure to Advisors
domestic and.Intemational stocks.
VantageTrust Model Large Growth The fund's. primary objectve is to offer high long-term Vantagepoint Investment
Portfolio All-Equity Growth capital growth through exposure to stocks. Advisors
Fund
VantageTrust Asset Domestic Hybrid Seeks conservative growth by actively allocating assets Mellon Capital Mgmt.
Allocation Fund among stocks, bonds and cash. Designed to take
advantage of volatile markets by varying the
percentage mix of those asset classes
VT Fidelity Puritan° Fund Domestic Hybrid Seeks-total return through high current income by Wilshire Asset Mgmt.
Investing in a diversified portfolio ofhigh-yielding
stocks and bonds
Investments in the Cash Management Fund are not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other. government agency. Although the Fund seeks to preserve the value of your investment at X1.00 per share, it Is possible to lose
money by investing in the Fund.
* Please consult both the current specific fund's prospectus and MAKING SOUND INVESTMENT DECISIONS; A Retirement Investment
Guide carefully .prior to investing -any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer
affiliate of ICMA RC, member NASD/SIPC. ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-
- 669-7400.
ICMA R E T I R[ M .ENT. C O R P-0 R A T I.p N~ I 26~
The City of Vernon, California
Section 457 Deferred Com ensation Plan uali investments
RC's Due biligence Process
RC conducts independent oversight and review of all funds offered to plans (with the exception
of the PLU5 Fund, which is managed in-house). RC's Investments Division is responsible for
- .the management of all assets in the VantageTrust.
All Vantagepoint funds are funds created by RC, and each has a stated. investment objective.
RC hires professional investment management. organizations (referred to as subadvisers) to
manage specific segments of each .fund. Each subadviser is in turn. bound by a set of
guidelines specific to the Vantagepoint fund segment they are hired to manage. The guidelines
not only characterize the investment. objectives,. but also set limits on the types of securities
each subadviser is allowed to invest in. These limits are designed to control the risk of the
portfolio, yet allows the manager to add value to the Vantagepoint fund in its .area of expertise.
Riskier types of investments and strategies .are specifically addressed in each manager's
assignment and are monitored closely by RC.
Each subadviser's portfolio is analyzed regularly. Risk,- return and diversification. measures are
assessed for each subadviser and for the entire Vantagepoint fund. RC uses several .types of
analytical software to independently evaluate each portfolio, performance and transactions.
Analytical tools are combined with qualitative research to:
• Confirm that the objectives and guidelines of each fund are met;
¦ Measure the risk, return and diversification of the portfolio;. and
• Make any appropriate adjustments to the. portfolios to maintain the overall investment
objectives of the Vantagepoint fund:
RC also offers a number of popular mutual funds in the VantageTrust Mutual Fund Series.. RC
monitors these funds as well, but unlike the Vantagepoint funds, RG does not have control over
the investment objectives .and guidelines of these funds. Both quantitative and- qualitative
analyses are conducted to determine the fund's adherence to stated-objectives, prospectus
parameters, and to identify the specific types of risk incurred by the fund. Regular analysis and
reporting are done. Adjustments to the VantageTrust Mutual Fund Series are made when a
fund fails to meet-RC's expectations for the fund given the fund's. stated objectives.
This independent oversight allows RC to'add a level of portfolio analysis and risk management-
over the subadvisers, Vantagepoint funds and VantageTrust Mutual Fund Series funds.
I C M A R E T I R E M ENT C0 R P-0 R A T I ON T7 -
The City of Vernon, California
Section 457 Deferred Compensation -Plan Quality Investments
Performance
The Vantagepoint Perspective is our online quarterly investment newsletter supplement that
provides current fund performance, benchmarks, and data for funds of the VantageTrust.
,
~
r. - ~ .
~
Vanta eTrust Growth Fund 16.01% 23.26% -12.77% 4.42% 8.55% - 4 83
VT American Centu Ultras Fundl 14.90% 18.89% -14.61% 0.69% - 5,75% 1 96
VT Putnam Vo a er Fund 14.51% 20.28% -17.92% 1.14% - 7.41% 6 95
Vanta eTrust 500 Stock-index Fund 14.13% 23.72% -.10.65% 0.38% - 3.40% 6 97
Vanta eTrust Broad Market Index Fund 16.43% 25.39% -10.45% 1.33%° - 9.38% 10 94
Vanta eTrust Growth & Income Fund 15.65% 26.15% -6.05% - - 7.02% 10 98
VT Calvert Social Investment Fund 11.14% 23.23% - - 13.97% 7 02
VT Fideli Contrafund° 14.69% 16.02% •5.60% 5.17% - 9.35% 1 96
VT Fideli Ma ellan®z 12,33% 20.73% -11.97% 1.30% - 5.81% 1 96
VT MFS Lar a Com an Growth Fund3 13.84% 16.70% -19.29% - - 0.40% 10/98
Vanta eTrust E ui Income Fund 16.10% 21.78% 3.21% 3.98% - 11.07% 4 94
VT Lord Abbelt Lar a Com an Value Fund4 14.72% 26.32% _ - - -3.03% 10 00
,
Vanta eTrust A ressive 0 ortunltles Fund 29.09% 34.55% -17.44% 4.21% - 9.64% 10 94
Vanta eTrust Mid Small Co Stock Index Fund 25.22% 31.92% -9.21% 4.82% - 4.31% 6 97
VT American Centu ~ Value Fundy 13.31% 22.67% 7.81% 7.46% - 5.64% 9 97
VT Gabelli Value Fund 14.91%. 28.72% -0.57% 7.88% - 11.50% . 10 95
VT INVESCO Small Com an Growth Fund 21.62% 27.66% - - - -18.60% 10 00
VT T. Rowe Price® Small Ca Stock Funds 16.07% 24.25% - - - 2.48% , 10 00
VT T. Rowe Price® Small Ca Value Funds 19.78% 28.19% - - - 15.74% 7 02
VT ]anus Adviser Series Worldwide Fund 8.79% 12.30% - - = 6.58% 7 02
Vanta eTrust International-Fund 14.20% 21.30% -10.01% 0.49% - 1.95% 10 94
Vanta eTrust Overseas E ui Index Fund 17.61% 25.14% -9.40% -0.41% - -1.21% 6 97
VT Putnam International Growth Fund 11.95% 20.97% -10.05% - -1.30% 6 99
~
Vanta eTrust PLUS Fund* 3.91% 4.02% 4.62% 5.03%' 5.66% - 1 91
Vanta eTrust Cash Mana ement Fund** 0.28% 0:49% 2.06% 3.18% 3.65% - 2 89
Vanta eTrust US Government5ecuritles Fund 1.75% 2.28% 7.35% 4.95% 5.28% 7 92
Vanta eTrust Core Bond Index Fund 3.49% 5.08% 8.71% 5.80% 5.88% - 12 74
VT PIMCO Total Return Bond Fund 4.44% .6.76% - - - 8.97% 7 02
VT PIMCO HI h Yield Bond Fund 16.56% 26.78% - - .26.39% 7 02
ICMA RETIREMENT CORPORATION 2$
The City of Vernon, California
Section 457.Deferred Compensation Plan Quality Investments
r ~r
Vanta eTrust Savin s Oriented Fund 5.71% 8.30% 2.76% 4.45% - 6.48% 2 95
Vanta eTrust Conservative Growth Fund 8,61% 12.08% 0.15% 4.46% - 6.26% 4 96
Vanta eTrust Traditional Growth Fund 11.85% 16.73% -2.95% 4.45% - 6.51% 4 96
Vanta eTrust Lon -Term Growth Fund 15.30% 21.56% -5.72% 5.58% - 6.77% 4 96
Vanta eTrust All-E ui Growth Fund 18.01% 25.39% - - - -9.22% 10 00
Vanta eTrust Asset Allocation Fund 14.32% 24.96% -4.37% ' 1.66% 7.94% 12 74
VT Fideli Puritan° Fund 10.67% 18.23% 0.96% 4,39% - 8.26% 6 95
*Because there is no trading market for investment contracts, PLUS Fund returns consist of yield only. Returns are annualized for
ease of comparison with other stable value investments, The minimum annualized effective yield for the fund for the three-month
period-ending 12/31/03 is 3.52%.
**Investments in the VantageTrust Cash Management Fund are not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money by investing in the Fund..
1 American Century. & Ultra are registered trademarks of American Century Services Corporation.
2 Closed to new plans
3Invests solely in MFS Massachusetts Investors Growth Stock Fund.
a Invests solely. in the Lord Abbett Affiliated Fund.
e T. Rowe Price is a registered trademark of T. Rowe Price Group, Inc. -all rights reserved. Adviser series fund invests solely in
underlying fund. Adviser series created 03/2000 -fund data provided for underlying fund. Please note that the Adviser Series Fund
and the underlying Fund are two separate and distinct Funds.
Categories are from Morningstar as of 3/31/03 for underlying funds where available. Category for the PLUS Fund was determined by
ICMA-RC based on underlying fund characteristics. Morningstar, Inc, is a global Investment research firm that is not affiliated with
ICMA-RC. Morningstar used as a source for some data.
* This information is being provided for educational purposes only and is not intended to be construed as or relied upon as
investment advice, This information is not intended to be construed as a solicitation for particular product or security. Performance
reflected above represents past performance, Investment returns and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is-not ihdicative of future
returns. Individuals are advised to consider any new investment strategies carefully prior to Implementing. Please consult both the
current Vantagepoint Funds prospectus and MAKING SOUND INI/ESTMENT' DEGISIONS.• A Retirement Investment Guide, which
contains additional information on management fees, other fund expenses, and investment risks and objectives carefully prior to
investing any money. Vantagepoint securities are distributed by ICMA RC Services LLC, a broker dealer affiliate bf ICMA RC,
member NASD/SIPC, ICMA RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-600-669-7400.
~ ICMA RETIREMENT C O R P O R A T I g N- ~ 29
The City. of Vernon, California
Section-457 Deferred Compensation plan
Commitment to the Public Sector
About the ICMA Retirement Corporation
The ICMA Retirement .Corporation is anot-for-profit corporation that administers retirement
plans for state and local government employers exclusively.
RC was founded through the International. City/County Management Association (ICMA) in 1972
with a grant from the Ford Foundation. From the beginning, our sole purpose has been to
.provide low-cost, portable retirement plans tailored to the needs of public sector employees.
We administered the first nationally available deferred compensation plan in 1972,, and in 1985
we began offering qualified. defined contribution plans. The quality of our service is reflected in
our growth; in the past five years the RC program has more than doubled. There are now more
than 625,000 public employees with total assets of approximately $18 billion participating in RC
plans.
RC serves as the investment adviser to the ICMA Retirement Trust (Trust), a separate entity
established in 1983 to provide for the commingled investment of the assets of retirement plans
administered by RC. As an instrumentality of state and local .governments, the Trust has
.received an exemption from registration with. the SEC-but in many ways, it functions like a
registered investment company. The' Trust offers a range of funds,. all of which have been
designed for retirement plan investment.
On June 21, 2001, the Trust converted its form of organization to a bank trust company to be
known as VantageTrust Company ~~Trust Campany'~. VantageTrust Company sponsors a trust
that is virtually identical to the Retirement Trust.
The Trust Company is anon-depository New Hampshire :.Banking Corporation governed by a
nine-member Board of Directors, five of whom must be full-time employees of .Public
Employers; one of whom,: at the time of election, must be a present or former member of the
Executive Board of the International City/County Management Association, and one of whom,
at -the time of election, must be a present or former Director of the Retirement Corporation.
Three of the Directors are nominated for election by Public Employers-that have adopted the.
Retirement Trust or who have previously-.adopted the ICMA- Retirement Trust, each Public
.Employer having one vote.
Participants experienced no change in investment options, services or fees as a result of this
change. The same persons who served on the Board of the Retirement Trust, at the time- of
conversion; also served as the directors of VantageTrust Company; immediately following the
conversion.
ICMA RETLREMENT CORPORATION I $O
The City of Vernon, California
Section 457 Deferred Compensation Plan Commitment to the Public Sector
The RC System
The Retirement Corporation, an independent and not-for-profit corporation with no commercial
affiliations, is one of several associated but legally separate entities:
• The ICMA Retirement Corporation, which serves as investment adviser to the
VantageTrust. RC is not a subsidiary of any corporation.
¦ The VantageTrust, which holds the pooled retirement investments of participants in RC-
administered 457 and 401 ,plans. Participant assets are allocated among the Trust's
investment funds. Employers become eligible to participate in the Trust by Resolution
passed by their: governing body. The Trust may -not accept contributions in the absence of
such a resolution.
• ICMA-RC Services, LLC, which is the broker-dealer affiliate through which Vantagepoint
securities are distributed. ICMA-I2C Services, LLC is a member of the NASD/5IPC.
• The Vantagepoint Funds, which are sponsored by RC, is aSEC-registered "series"
investment company (mutual fund) offering 19 distinct portfolios. Each.. portfolio has a
different investment objective and strategy. Thirteen of the funds of the VantageTrust each
invest solely in the shares of a corresponding Vantagepoint Fund, with each Vantagepoint
Fund having investment objectives that are identical to those of the investing Trust Fund.
• Vantagepoint Investment Advisers, LLC (VIA); which serves as investment adviser to
The Vantagepoint Funds. VIA is an affiliate of RC.
¦ Vantagepoint Transfer Agents, LLC (VTA), which serves as transfer agent for The
Vantagepoint Funds. VTA is an affiliate of RC.
Sponsoring Organizations
- RC's program is endorsed by the following public sector organizations:
¦ American Association of Airport Executives International Association of Assessing Officers
¦ American Institute of Certified Planners International Association of Chiefs of Police
¦ American Planning Association International Association of Fire Chiefs
¦ . American Public Gas Association International Clty/County Management Association
¦ American Public Power Association International Institute of Municipal Clerks
¦ American Public Transit Association _ ¦ International Municipal Lawyers Association
¦ American Public Works Association .National Association of Regional Councils
¦ American Society for Public Administration National League of Cities
Building Officials and Code Administrators, International Public Risk Management Association
¦ Government Finance Officers Association
ICMA RETIREMENT CORPORATION
The,City of Vernon, California
Section 457:Deferred Compensation Plan Commitment to the Public Sector
Vantagepoint Public Employee Memorial Scholarship Fund
RC has established the only competitive scholarship program of ..its kind serving public
employees.
The Vantagepoint Public Employee Memorial Scholarship Fund assists the children and/or
spouses of deceased public employees who died in the line of duty,.-who. plan to cpntinue to
education in college or vocational school programs. Scholarships are offered each year for full-
time study at an accredited institution of the student's choice.
This scholarship program is administered by Scholarship Management Services, a department of
Citizens' Scholarship. Foundation of .America, Inc. (CSFA). CSFA is a national `nonprofit
educational support .and student aid service organization that seeks .to involve and assist the
private sector in expanding educational opportunities and encouraging educational
achievement.
ICMA R ETIREM ENT CO RPORATION I $2